#25 Japan's new PM, Upcoming general elections, Bilateral talks, F-35B lands on Izumo, Malabar exercise phase II, central bank digital currency.
Here is a brief on the biweekly( 1st- 15th, Oct.).
Fumio Kishida becomes Japan's new Prime Minister
Kishida held talks notably with the presidents of the US, China, Russia
Australian Prime Minister Scott Morrison welcomed China to get involved in QUAD initiatives
A US Marine Corps F-35B landed on a Japan Maritime Self-Defense Force helicopter destroyer
Phase II of the Malabar exercise started in the Bay of Bengal
Japan's New PM:
Fumio Kishida succeeded Yoshihide Suga in becoming Japan's Prime Minister. He won the LDP presidential election and became the Prime Minister on 4th October. However, Kishida has called for a general election on 31st October. Depending on how Japan's ruling coalition fares in the general election, if Kishida will continue to be in power or not will be decided.
Foreign Affairs.
US-Japan bilateral talks: After he came to power, Kishida has held telephonic conversations with many national leaders, including US President Joe Biden, Chinese President Xi Jinping, Russian President Vladimir Putin and British Prime Minister Boris Johnson. Amongst the telephone calls with foreign leaders, his first was with US president Joe Biden. After talking with Biden, Kishida told reporters that Biden firmly committed "to the defence of Japan, including the application of Article 5 of the Japan-US security treaty to the Senkakus". China claims the Japan administered islands as its own and calls them Diaoyu. China frequently sends coast guard ships near the Senkakus, which is of great concern to Tokyo. As per Article 5 of the Japanese constitution, Washington will defend territories under Tokyo's administration from armed attack.
Meanwhile, speaking in an online event organised by a Washington think tank, Deputy Defense Secretary Kathleen Hicks said, "The United States hopes to work with Japan to further advance the Quad group under the presumptive next Prime Minister Fumio Kishida".
Tokyo-Seoul relations: It has been already one year since Kishida's predecessor Yoshihide Suga assumed office last September. There has not been even one formal meeting conducted with South Korea during the tenure. Japan and South Korea have been at odds over wartime issues, which has been uncomfortable for Washington as both are key allies. Arrangements are taking place for Kishida to talk with South Korean President Moon Jae.
Japan-UK bilateral talks: The key topics discussed during the telephone call between Kishida and his British counterpart Boris Johnson are as below: strengthening security cooperation, talks over regional issues Japan has with North Korea and China, Britain's entry into the Trans-Pacific Partnership, easing import restrictions over Japanese food products because of 2011 Fukushima nuclear disaster. Also, Johnson invited Kishida to the COP26, UN climate change talks scheduled for Nov. in Glasgow.
On QUAD.
China can join QUAD initiatives: With the conclusion of the QUAD summit of 2021, Australian Prime Minister Scott Morrison welcomed China to get involved in maintaining peace and security of the Indo-Pacific region. He also emphasised the QUAD's crucial role by leveraging emerging technologies in handling the post-pandemic world and climate change.
An Expert's opinion of the QUAD: In an article in the Hindu titled "At the QUAD, forming habits of cooperation", the outcome of the QUAD summit has been deeply analysed by Rajiv Bhatia, a Distinguished Fellow at Gateway House. A brief overview of the article is as below:
The recent summit has widened its areas of cooperation to ensure peace and security in the Indo-Pacific region. The plurilateral organisation promotes sustainable infrastructure in digital connectivity, climate change, health security, and gender equality. The momentum gained by the QUAD formation is likely to gain impetus to India to counter challenges in its Indo-Pacific neighbourhood with other advanced economies. "This is an opportunity for India to work with the advanced economies to "build habits of cooperation" while confronting the 21st-century challenges in its Indo-Pacific neighbourhood".
US's perception of the QUAD: At two separate interactions during her visit to India and Pakistan, the US Deputy Secretary of State Wendy. R. Sherman reiterated that the QUAD countries must work on softer issues involving energy, vaccines, technology, infrastructure and supply chain resilience that are needed to gain the confidence and ensure security for the people of the Indo-Pacific region. Sherman said the QUAD is a "non-defence, non-military" arrangement. Post the formation of the AUKUS alliance, her remarks imply a shift in QUAD's plan from the earlier reference to the grouping as Quadrilateral Security Dialogue. When Former Indian Ambassador to China Gautam Bambawale posed a question to Sherman regarding the difference between the Quad and AUKUS, Sherman replied, the two were non-competing "pieces of a puzzle". But few officials feel the position of the US towards QUAD has not changed or downgraded, and it has been repurposed.
Defence.
F-35B lands on Izumo: Japan is strengthening its military capabilities to counter China's growing military assertiveness. "Japan has created its first amphibious military unit since World War II and launched a new class of high-tech frigates, and it's restructuring its tank force to be lighter and more mobile and building up its missile capabilities". Recently two US Marine Corps F-35B landed on a Japan Maritime Self-Defense Force helicopter destroyer. The tests are just the first steps for Japan to get its first carrier in 75 years.
Watch the US marine corps landing on a Japanese aircraft carrier:
Malabar Exercise phase II: Phase II of the Malabar exercise started in the Bay of Bengal on 12th October. The three-day practice will see the participation of the Japan Maritime Self Defence force vessels, including Izumo class helicopter carrier Kaga and guided-missile destroyer Murasame, along with their integral SH60K helicopter. Phase I of the Malabar exercise was hosted by the US in Guam in August.
Economy.
The International Monetary Fund has made a growth projection for Japan, the world's third-largest economy, at 2.4% in 2021. In comparison, that of China and the US are at 8% and 6% respectively. However, for Japan, the economic growth has decreased by 0.4% point from its July estimate. The decline in economic growth is due to the most recent wave of coronavirus infections and the state of emergency from July to September that curtailed business activities in Tokyo and elsewhere.
2021 Projected Real GDP (% Change) for Japan: 2.4
2021 Projected Real GDP (% Change) for China : 8.0
2021 Projected Real GDP (% Change) for the US: 6.0
Technology.
Digital Currency principles: The Group of Seven industrialised nations, famously known as G7, have devised a standard set of guiding principles focusing on the operations of central bank digital currencies. The finance chiefs will endorse the 13-point tenets in a meeting in Washington. It was noted in the draft document that "by setting out a common set of principles, and underscoring the fundamental importance of shared values such as transparency, the rule of law and sound economic governance, these principles can guide and inform exploration of retail CBDC in the G-7 and beyond." China is ahead in the race of any other major economy in launching digital currencies, while Japan has only started tests to experiment with the essential functions of CBDC. However, none of the G-7 members and the European Union has decided on implementing CBDC. "According to the draft document, the G-7 members will acknowledge the rapid rise in the use of digital payments is transforming the way people and businesses transact, and the trends have been "further accelerated" by the coronavirus pandemic, which has raised the need for contactless transaction functionality."
If you are interested to know more about Central Bank Digital Currency, watch the below video from The Economist:
The technology innovation introduced by some tech giants like the digital payment ecosystem poses a threat to Central banks and their operations. As a counter step, Central banks have come up with creating their digital currency to take over the grasp of the economy. The Chinese government is at the forefront by introducing its digital currency(digital yuan). The introduction of CBDC has both advantages and disadvantages. While it may increase fast and cheaper financial access to many people, on the downside, it will threaten the future of traditional banking and also result in increased state intervention in everyday transactions.
Titbit
Lia Camargo, Global Business Manager from Femtech, talk in "Tokyospeaks" about Fes! 2021 conference. Tokyospeaks is a podcast that features Tokyo's diverse and inspiring international community. The Fes! 2021 event will happen in Tokyo. It will be Asia's largest global femtech conference. Femtech implies products, services, diagnostic tools and software that use technology to improve women's health. When women's health concerns are underrepresented, the forum will see the participation of 120 global companies who will showcase their tech developments that provide solutions to health and wellness issues faced primarily by women.
Tokyospeaks- "on Fes!2021": https://tokyospeaks.com/social-taboos-into-triumphs/